Sorin sets out revenue targets for next five years
Sorin, Europe's largest cardiovascular device company, has released details of its 2012-2017 strategic plan, which focuses on the implementation of the companyâs medium-long term strategy.
The revenue targets have been set for the five-year period for its business units, including expected revenue growth for the Cardiopulmonary Business Unit of 2 to 4 per cent CAGR due to a forecasted full operational recovery of the Mirandola plant following recent earthquakes. Expected revenue growth for the Cardiac Rhythm Management unit is expect to be in the same area as that of the Cardiopulmonary unit as a result of "challenging" market conditions. Expected revenue growth for the Heart Valves unit is between 7 to 9 per cent CAGR. These targets are based on comparable exchange rates.
In addition to its base business, the company says it has also identified additional growth opportunities that include investment into two new growth platforms that address heart failure and mitral valve regurgitation. Potential additional revenues from these new ventures could amount to EUR 100 to EUR 150 million in 2017. Accelerated geographic expansion initiatives in Emerging markets and primarily in the BRIC region - potential additional revenues from local manufacturing and R&D investments in these regions could amount to EUR 30 to EUR 40 million in 2017. The company has also targeted revenue-generating acquisitions that aim to increase the company's critical mass in markets in which it is already present or in adjacent business segments.
Including the additional growth opportunities, Sorin expects consolidated revenues to grow by 5 to 7 per cent CAGR during the 2011-2015 period, despite challenging market conditions, then accelerating to 8 to 10 per cent CAGR in the 2015-2017 period. EBITDA Margin is expected to increase by an average of approximately 100 basis points per year during the period and reach 20 per cent in 2015.